MINNESOTA LABOR LAWS
Minnesota defers to the FLSA, which requires that all domestics, including companions, be paid at no less than the greater of the state or federal minimum wage.
Minnesota minimum wage is $8.63/hr.
- Minneapolis minimum wage is $14.50/hr.
- St. Paul minimum wage is $11.50/hr.
All live-out workers are to be paid an overtime differential of 1.5 times the hourly wage for hours over 40 in a 7 day week. Live-in domestics, including companions, must be paid the overtime differential for hours over 48 in a 7 day week. Overtime or premium pay is not required for hours worked in excess of 8 per day or on weekends or holidays.
Paid Time Off
Minnesota does not mandate any paid time off for non-exempt workers.
- Minneapolis requires paid sick and safe time for employers with 6 or more employees. For such employers, sick and safe time accrues at a rate of one hour for every thirty hours worked. Employees begin accruing sick and safe time on their first day of employment, but can only use their accrued time 90 days after they started working. You may cap an employee’s accrual at 48 hours per year. You may also limit the total amount of unused sick and safe time in an employee’s “bank” to 80 hours during subsequent years. You may front load 48 hours for the first year of the employee’s employment and 80 hours each subsequent year in place of the accrual system. You do not have to reimburse employees for their accrued sick and safe time upon termination.
- St. Paul requires that, for every 30 hours worked, employees accrue 1 hour of earned sick and safe time. Employees begin accruing sick and safe time on their first day of employment, but can only use their accrued time 90 days after they started working. Earned sick and safe time may be capped at 48 hours per year, and total sick and safe time may be capped at 80 hours. Carryover of hours from one year to the next must be allowed, as long as the hours are within the caps. You may provide at least 48 hours up front following the initial 90 days of employment and at least 80 hours for each subsequent year in place of the accrual system. You do not have to reimburse employees for their accrued sick and safe time upon termination.
The federal government establishes and updates a maximum rate for non-taxable mileage reimbursement each year. The current rate is $0.655 per mile.
Minnesota allows you to pay your household worker daily, weekly, bi-weekly or semi-monthly, or monthly. Pay upon voluntary separation is due on the next scheduled pay date. Pay upon discharge is due immediately.
A written notice is required for each employee and anytime the employment relationship changes. We have a notice template available here.
Each time you pay an employee, you must provide them with a statement of wages that includes the name of the employee, the hourly rate of pay, total hours worked, gross wages, a list of deductions made from the employee’s pay, net wages, the date on which the pay period ends, and your legal name and your operating name (if it is different from your legal name).
- Minneapolis requires that sick and safe time hours accrued and unused must also be on the statement of wages.
Employment Contract Requirements
Minnesota does not have employment contract requirements. However, a free sample work agreement can be found here.
Workers’ Compensation Insurance
Minnesota requires household employers paying $77/week or more to obtain Workers’ Compensation Insurance. HWS ALWAYS recommends obtaining a Workers Compensation Insurance policy for the protection it provides in the event of a work-related injury sustained by your employee. A policy can usually be obtained easily and cost effectively by contacting your Homeowner’s or Renter’s Insurance provider. HWS can help you obtain this insurance through our insurance partner (just give us a call).
State Unemployment Insurance
Minnesota requires a new employer state unemployment insurance tax of 1.0% for the first $40,000 wages paid to each employee. This may vary if you have previous employees.
Frequency of Tax Filings
Minnesota requires quarterly tax filing for unemployment insurance and quarterly or annual tax filing for income tax withholding. HWS recommends filing quarterly.